Today we are going to be analysing Tongaat Hulet.
The main item of concern is a possible death cross occurring. I have marked it on the chart.
This is when the 5o Day Moving Average crosses under the 200 Day Moving Average. This is a very strong Bear signal and has been used for years by traders as a indicator to start shorting stocks.
Should the cross occur we would likely see a sell-off happening, sending the stock to the first major resistance area at 11,585.
This area seems to be a pretty strong resistance area and it has been tested a few times over the last 8 months and every time the price seemed to have bounced back.
Should the resistance hold we will like see a bounce back to the first minor support area at 12,780. If the resistance is broken we could potentially see further downward movement to the 11,000 area.
Looking at all the technical indicators and moving averages I think that we are going to see further move downward. At least for the next few weeks.
*All information in this article is the author’s opinion and is for educational purposes only. It does not constitute investment advice or a solicitation to buy or sell any financial instrument. Trading may expose you to risk of loss greater than your deposits and is only suitable for experienced investors who have sufficient financial means to bear such risk.